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Glossary · Metric

What is Average Order Value (AOV)?

AOV (Average Order Value) is the average revenue per order. With ad cost fixed, raising AOV grows profitability directly, which often makes it more valuable than adding traffic.

Detail

Proven ways to raise AOV: a free shipping threshold, bundles and sets, a complementary product suggestion at checkout, and quantity discounts. When setting a threshold, aiming roughly 25%–30% above current AOV works; a threshold set too high just drives customers away. On marketplaces your control over AOV is limited; on your own site it is complete.

Formula

AOV = Total revenue ÷ Number of orders

Example

In a store with a 420 TL AOV, setting the free shipping threshold at 550 TL usually lifts AOV into the 480–510 band.
FAQ

Common questions on this topic.

How is Average Order Value (AOV) calculated?

AOV = Total revenue ÷ Number of orders

In a store with a 420 TL AOV, setting the free shipping threshold at 550 TL usually lifts AOV into the 480–510 band.

Why does Average Order Value (AOV) matter?

Proven ways to raise AOV: a free shipping threshold, bundles and sets, a complementary product suggestion at checkout, and quantity discounts. When setting a threshold, aiming roughly 25%–30% above current AOV works; a threshold set too high just drives customers away. On marketplaces your control over AOV is limited; …

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